YEREVAN. – The proceeds raised from euro bond sales must be directed to the development of Armenia’s industry, said head of the Union of Domestic Goods Producers.

Vazgen Safaryan believes the funds can be used to build the second energy unit of Yerevan thermal power plant and the complex on processing of waste form Kajaran copper-molybdenum deposit. Additional 15,000 jobs will be created as compared with current 3,500.

Another program that could be financed through bonds is construction of Vanadzor-Fioletovo railway which will considerably reduce the distance from Yerevan to the Georgian border, he added.

Lending to small and medium-sized businesses is hardly profitable, Safaryan added, because the interest rate is too high.

Armenian government released 700 million US$-denominated bonds in September.